Chemtura sells Consumer Products Business to KIK for $ 315 million

Chemtura Corporation has entered into a stock purchase agreement to sell its Consumer Products business, including dedicated manufacturing plants in the US and South Africa, to the Canada-based KIK Custom Products Inc for $ 315 million. The company also announced today that its board of directors has decided to explore a sale of the company’s agrochemicals business, Chemtura AgroSolutions.
 
The agreement to sell the Consumer Products business, combined with the decision to explore a sale of Chemtura AgroSolutions, is aimed at delivering substantial near-term value to shareholders while further focusing the company on opportunities to create additional value as a pure-play leader in the global development, marketing, manufacture and sale of industrial specialty chemicals.
 
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"Today’s announcements represent the next step in our plan to simplify and transform our portfolio, positioning us to better benefit from secular industry growth trends in our chosen areas of market focus and create a sustainable competitive advantage,” said Craig A Rogerson, Chairman, President and CEO, Chemtura.
 
He added, “Following the sales of our Consumer Products and Antioxidants businesses, a sale of Chemtura AgroSolutions would transform Chemtura into a more focused, pure-play industrial specialty chemicals company with leading global positions that we believe can capitalise on attractive end-market growth trends, and continue delivering superior value to our shareholders and opportunities for our employees for many years to come.”
 
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Following a sale of Consumer Products and potential sale of the company’s agrochemicals business, Chemtura’s core platform will be focused and organised around two attractive segments: Industrial Performance Products or IPP (petroleum additives and urethanes products) and Industrial Engineered Products or IEP (flame retardants and brominated products, and organometallics). These segments have leading global industry positions in a number of markets.
 
Rogerson added, “Chemtura is well-positioned to extend IPP and IEP in the faster growing regions and in high opportunity applications across markets that offer strong secular growth. For example, in the fourth quarter, we will formally open our new multipurpose plant in Nantong, China, and we are committed to continuing to invest in these kinds of platforms for higher margin products going forward.”